Tuesday, February 17, 2015

2015 Real Estate Update

By Fred Eichenhofer, Sierra Pacific Real Estate

Last year was a very active year in real estate, sales slowing down somewhat towards the end of the year, but it is still a good real estate market.  It is a new year and it started out with a bang, activity picked up just after the first of the year.  I went to a California Association of Realtors Convention in October 2014 attending a luncheon where an economist spoke.  She said that prices have come down some, and activity has slowed, she didn't know if prices would continue to fall, her thoughts are they will probably remain stable, but in time we will know if lower prices would be a trend.
The challenge now is home affordability, inventory selection is still a problem for buyers, but should increase in 2015 since equity has gone up with the rise of prices, thus allowing homeowners that have wanted to move is now giving them the ability to put their home on the market which should increase inventory.
Interest rates are still low and have come down some in the last few weeks.  The Federal Reserve is talking about raising rates, so we don't know what this will do with real estate lending rates.
The real estate market should remain strong throughout 2015 provided the economy remains stable and interest rates remain low.
Factors that could hold back a recovery are, tight credit standards, lack of first time home buyers.
To maximize the value and price of a home, presentation is important.  It helps to have everything in place, clutter picked up and having good curb appeal.  It is best to have the home depersonalized, removing family photos, walls painted a neutral color, this allows the buyer to visualize their furnishings in the home.
Meadow Vista is usually a very stable real estate market, but is not immune from the ups and downs to the fluctuations of the real estate market in general.  Meadow Vista is a very desirable place to live and should hold values better than other areas.

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